BISHKEK - Kyrgyzstan plans to secure a loan of 2.075 billion yuan (approximately $306.9 million) to implement the China-Kyrgyzstan-Uzbekistan railway project. The draft agreement has already been submitted to the Zhogorku Kenesh (the country's parliament) for ratification, Akchabar.kg reports.
The financing will be provided by the Export-Import Bank of China for a term of 25 years. The grace period will be five years, and the interest rate will be 1.5% per annum. China will pay the interest on the 730 million yuan portion of the loan.
For the practical implementation of the project, a separate directorate, China-Kyrgyzstan-Uzbekistan Railway Company LLC, was established in 2025. It is registered as an independent legal entity and serves as a joint project company of the three countries. The structure is responsible for coordinating construction, managing financial flows, and bearing responsibility for project expenditures, along with the participating countries.
The total construction cost is estimated at $4.7 billion. Approximately $2.3 billion is planned to be raised through Chinese lending, with the remaining amount to be financed by the project participants in proportion to their stakes in the joint venture: China (51%), Kyrgyzstan (24.5%), and Uzbekistan (24.5%).
The 304-kilometer railway line will pass through Kyrgyzstan and become part of a new international transport corridor, which is expected to strengthen the country's transit potential and expand logistics links between Asia and Europe.
CentralasianLIGHT.org
June 16, 2026